Brownie's Marine Group Inc (BWMG)

[dickmilde]

" Is this a SLP type of hold "
The recent sales increase looks very encouraging and should result in a higher stock price. Gross margins are about 50% so higher sales will result in payment of operating expenses.

Assume a 3X annual sales increase from 5.1 Million to 15.3 then subtract 50% for the gross margin. This leaves about 7.6 M to pay operating expenses. Subtract 3 million for SG&A ( this can be any number… management has a habit of paying themselves more when more is available ) also, subtract 0.5 for royalties, 0.2 for R&D and you end up with a profit of around $3.9 million. 3.9/410 million shares is .0095 per share profit. .0095 X a PE ratio of 20 is a share price of 0.19.

The actual result will vary considerably depending on the operating results and what PE the market decides on. The list of unknowns is long, management execution, product innovation, acceptance by the consumer, market conditions.

So I will continue to hold, things look encouraging… Impossible to put a price target on it.